Telco unveils AI-driven roadmap under new CEO

CEBU, Philippines — Carl Raymond Cruz, the newly minted President and CEO of Globe Telecom, has unveiled a bold strategic roadmap aimed at consolidating Globe’s dominance in mobile services while aggressively expanding its footprint in fiber, broadband, and enterprise solutions — setting the stage for Globe’s next cycle of growth.

Speaking at the company’s 2025 Annual Stockholders’ Meeting and subsequent press briefing, Cruz emphasized Globe’s pivot to hyper-personalized customer engagement models, heavily driven by artificial intelligence (AI). The strategy aims to reshape customer experience across both postpaid and prepaid markets — with the latter flagged as a critical competitive arena.

“Our vision is clear — we will move beyond traditional telco performance metrics to deliver real impact in a fast-evolving digital economy,” Cruz said, adding that winning in mobile was just the start. “Now, it’s about winning the future.”

Despite mounting market pressures, Globe remains the clear leader in mobile, which accounts for approximately 75 percent of its revenues. However, Cruz signaled that fiber broadband and enterprise services will be the company’s primary growth engines moving forward, particularly in light of the Philippines’ outpacing regional peers as Southeast Asia’s fastest-growing economy.

The management, he added, projects low- to mid-single-digit topline growth in 2025, with acceleration expected in subsequent years as AI-driven operational efficiencies and new business segments mature.

Investments will be concentrated in automation, predictive maintenance, and AI-enhanced customer service — areas Globe expects to drive cost savings and operational agility.

Financial Discipline Amid Expansion

Chief Financial Officer Carlo Puno stressed that Globe enters 2025 on solid financial ground. The year 2024 marked a record year, with service revenues hitting P165 billion (+2 percent Year-on-Year [YoY]), EBITDA [earnings before interest, taxes, depreciation, and amortization] reaching an all-time high of P86.8 billion (+7 percent YoY), and normalized net income after tax rising 13 percent to P21.7 billion.

The company’s EBITDA margin of 52.6 percent surpassed guidance despite inflationary headwinds, underpinned by stringent cost management and disciplined capex execution — capital expenditures were reduced by 20 percent to P56.2 billion.

Globe’s mobile data business remained resilient, with revenues up 7 percent to P97.4 billion, now representing 83 percent of total mobile revenues.

The company ended 2024 with 37.4 million mobile data users, reinforcing its stronghold in a digitally dependent consumer base.

Globe’s leadership team has set a target to maintain a 50 percent EBITDA margin while expanding enterprise and SME contributions.

Chief Commercial Officer Darius Delgado emphasized Globe’s dual-track strategy of monetizing digital adoption trends and providing critical infrastructure for SME digitalization.

“We are deliberately shifting from pure connectivity to integrated digital solutions. This is key to unlocking new enterprise growth levers,” Delgado said.

Risks and Forward Outlook

While Globe is positioned favorably, competition in prepaid broadband and enterprise B2B (business-to-business) is intensifying, and execution risks remain, particularly around customer migration to fiber and enterprise solution uptake.

Management’s clear-eyed focus on cash flow generation, portfolio optimization, and disciplined investments is expected to mitigate these risks.

Globe’s management remains bullish but pragmatic about the road ahead. “We will continue to disrupt ourselves before others can,” Cruz said, highlighting the company’s willingness to cannibalize legacy businesses to sustain long-term leadership.

As of 2025, Globe is strategically aligned to leverage its dominant market position, operational strength, and digital transformation initiatives to drive sustained value creation for shareholders in one of Asia’s most dynamic economies.

Cruz brings over three decades of expertise in the fast-moving consumer goods sector, with a particular focus on general management and marketing. He most recently held the position of CEO and Managing Director at Airtel Nigeria, the nation’s premier network operator.